Debt consolidation- please advise

Jess333

Hi everyone
I'm not sure if I'm posting in the right place but if anyone could give me some advice it would be appreciated
I've ended up in a bit of financial trouble and now have 2 loans to pay which are both just under £200 a month each as well as a credit card which still has 600 left to pay. These are all quite high interest in between 39.9% and 69.9% so I have applied for a balance transfer card which should be on its way as well as a larger loan with slightly less interest to pay back with a monthly payment of 260. My plan was to consolidate it myself so that I dont have to go through consolidation companies but now I'm not sure if it's the best idea to give myself more debt! Does anyone have any advice for me? Tia

Willing2Learn

Hi Jess333 and welcome to the forum

Although you have only given a little bit of background, it sounds like you are digging an ever deeper financial hole for yourself. Consolidation rarely works for people who have failed to address the inherent weaknesses in their monthly budget. Whatever you do, don't go through a consolidation company as they are only interested in taking their cut of the proceeds.

The best advice I can give is to recommend you complete and share your Statement of Affairs (SOA), so that we can see your exact financial circumstances and so that we may give targeted advice, support and guidance appropriate for your need.
http://www.stoozing.com/calculator/soa.php

enthusiasticsaver

I agree with willing that consolidation will not work in helping you get out of debt. If your existing debt is attracting high interest you either have a poor credit record or you are over committed in lenders eyes. Therefore applying for more debt in terms of a loan or credit card (unless you are able to get a 0% BT) will not help you.

Do a soa
Keep a spending diary
Save up an emergency fund so you don't add to the debt
Pay as much as you can to the debt starting with the most expensive.

Dobbibill

Hi Jess - welcome to the forum.

Consolidation is rarely the answer.

Address the reason for the debt - is it a situation that is likely to happen again?

Post a SOA and/or address the highest interest bearing debt first with minimum payments on the others.

All the best.

macman

Consolidation simply results in you paying less per month but over a longer period. Forget the monthly repayment, look at the total cost of the loan, which will be more.